
Delaware has long been the premier location for corporations because of specific advantages:
- EASY, FAST INCORPORATION
- LOW COST
- NO STATE INCOME TAX IF THE CORPORATION IS NOT DOING BUSINESS IN DELAWARE
- NO SALES TAX
- NO PERSONAL PROPERTY TAX
- NO INTANGIBLE PROPERTY TAX
- Most Delaware corporations can be formed within minutes and documents are available within 24 to 48 hours.
- Incorporation costs are low.
- Service from the State of Delaware is fast and efficient.
- One person can be the only Officer, Director, and Shareholder.
- No minimum amount of capital is required.
- Delaware state income tax is not levied on corporations which are not doing business in Delaware.
- Annual franchise tax is low (minimum is $175 tax, plus $50 filing fee, total $225). LLCs pay $300 annually.
- Officers and Directors can be indemnified, limiting their personal liability.
- Corporate books and records may be kept anywhere in the world.
- Non-resident shareholders pay no Delaware tax on shares.
- Shareholders are protected by takeover statue, which limits abusive hostile takeover tactics.
- Directors do not need to be shareholders.
- Delaware corporation law has well-established legal precedent*.
- Delaware courts are respected nationwide for their expertise in corporate matters.
- Voting provisions requiring greater-than-majority approval may be enacted.
- Delaware allows for conversion of corporate entities - LLCs can convert into corporations and corporations can convert into LLCs!
- Liberal choice of corporate name provisions and ease of reserving corporate name.
- Corporation may pay dividends from profits and surplus.
- Shareholders, directors and/or committee members may act by unanimous written consent in place of formal meetings.
- Directors may be given the power to make and alter by-laws.
- Corporation may hold stocks, bonds or securities of other corporations, real and personal property, within or outside the state, with no limitation as to amount.
- Different kinds of business may be carried on in combination.
- Corporation may fix quorum of board of directors -- not less than one-third of the whole board; two if only two shareholders; one if only one shareholder.
- Voting trusts and voting agreements may be created.
- Generally, stockholder liability is limited to stock held in the corporation.
- Delaware law includes Close Corporation provisions.
- Classes of stock may be issued in series.
* The Delaware Court of Chancery is a court of corporate and business expertise and excellence admired around the world and is the key reason why more than half of all Fortune 500 companies are Delaware Corporations!